Asian Development Bank aid Rs 600 cr for Khadi & Village Industries

The Asian Development Bank has approved an aid of Rs 600 crores to the Khadi & Village Industries Commission, to help it implement the Khadi Reform and Development Programme. “The money will be utilised for technological upgrade of over 300 khadi and village industrial units,” said, KVIC Chairperson, Ms Kumud Joshi, at a Press Conference in Mumbai today, held on the eve of Gandhi Jayanti.

KVIC had been receiving piecemeal support for Khadi in the past, but this was inadequate for the growth of the sector. Hence, KVIC had approached the Union Ministry of Finance to take up its case with the ADB. The Development Bank in turn appointed M/s Price Waterhouse Cooper as consultant to appraise the proposal and based on its recommendation, sanctioned the $150 million aid over a period of three years.

“Over nine lakh workers in the sector use outdated equipment, which affects capacity building and increase in their supplementary income. With this assistance, the situation is likely to improve” said Ms. Joshi. She hoped that the funding will help Khadi stand up in the market as a fashion statement.

The Khadi and village industries production during 2006-07, data for which have been compiled, stood at Rs 491 crores, with 8.8 lakh persons gainfully employed. Village Industries turnover during the year was Rs 13, 537 crores, providing employment to over 80 lakh people.

KVIC is also the nodal agency to implement the Prime Minister’s Employment Generation Programme, a credit-linked national scheme launched to generate employment opportunities through establishment of micro enterprises in rural and urban areas of the country.

The month long Khadi Fest 2008 will be inaugurated on the Gandhi Jayanti tomorrow, which will exhibit and sell various products manufactured by KVIC units spread across the country.